Connexa Sports Technologies Inc. reported significant financial changes in its 10-Q filing for the quarter ending July 31, 2024. The company experienced a notable decline in net sales, which totaled $704,899, down from $3,120,231 in the same period of 2023. Correspondingly, gross profit also decreased to $272,121 from $892,749 year-over-year. Total operating expenses rose to $3,527,316, compared to $2,747,413 in the prior year, leading to an operating loss of $(3,255,195), worsening from $(1,854,664) in 2023. The net loss from operations before provision for income taxes was $(4,220,745), compared to $(846,765) in the previous year, while comprehensive loss increased to $(4,281,478) from $(873,785).

The company’s financial position showed improvements in liquidity, with cash and cash equivalents rising to $1,711,283 as of July 31, 2024, up from $229,705 at the end of April 2024. Total current assets increased to $21,184,400, while total assets reached $23,185,400. However, total current liabilities also rose to $13,747,072 from $12,022,810, resulting in total liabilities remaining unchanged at $13,747,072.

Connexa's accumulated deficit grew to $(171,607,773) from $(167,387,028) in the previous quarter, and total stockholders’ equity decreased slightly to $9,438,328 from $9,599,814. The company issued 116,510 shares of common stock and pre-funded warrants in January 2024, raising approximately $16.5 million. Additionally, the company executed a 1-for-20 reverse stock split and increased its authorized shares from 300 million to 1 billion.

Strategically, Connexa has been reducing operating expenses, including the sale of PlaySight and a 75% stake in Foundation Sports in late 2022. The company has also recorded a 20% ownership stake in YYEM valued at $16.5 million. Despite these efforts, there remains substantial doubt about the company's ability to continue as a going concern, dependent on completing a merger, generating profitable operations, or obtaining necessary financing.

The company continues to monitor potential impacts from global events, including the COVID-19 pandemic and geopolitical tensions, which may affect its operations and financial results. As of the reporting date, the company has not faced material disruptions but acknowledges the potential for future challenges.